Maharashtra budget: Cigarettes, liquor, cosmetics to cost more

MUMBAI: With large parts of Maharashtra reeling under severe drought, the state Budget presented on Wednesday proposed hike in taxes on cigarette, tobacco, liquor, cosmetics and jewellery to mop up additional resources to fund relief efforts and meet the state's development needs.

Deputy Chief Minister Ajit Pawar, who holds the finance portfolio, presented a Rs 184.38 crore surplus budget that seeks to net an additional Rs 1150 crore through increase in taxes.

Presenting the budget proposals in the Legislative Assembly, Pawar said tax on cigarette will be raised from 20 per cent to 25 per cent and bidi from 5 per cent to 12.5 per cent. While 12.5 per cent tax on branded tobacco sold in pouches will remain unchanged, unmanufactured tobacco, which is hitherto tax free, would be taxed at 12.5 per cent.

The Minister also announced increase in excise duty on country liquor, Indian Made Foreign Liquor (IMFL) and strong beer.

Excise duty on country liquor has been raised from Rs 95 to Rs 110 Per Proof Litre (PPL), while on IMFL it has been hiked from Rs 240 to Rs 300 PPL.

Duty on strong beer has been raised from Rs 42 per bulk litre or 175 per cent of manufacturing cost whichever is higher, to Rs 60 per bulk litre or 200 per cent of the manufacturing cost whichever is higher.

Ingredients for making non-alcoholic beverages would now be taxed at 12.5 per cent instead of the earlier 5 per cent.

Noting that taxes on lottery had not been increased in the last few years, Pawar said weekly lottery will now be taxed Rs 60,000, fortnightly lottery scheme or any lottery scheme between a week and a fortnight Rs 1.25 lakh, and monthly lottery or which exceeds fortnight Rs 2.5 lakh and bumper lottery Rs 12 lakh.

The budget also proposed increasing tax on gold, silver and jewellery made from these metals from one per cent to 1.10 per cent.